As regulations on virtual assets tighten globally, many investors are reportedly considering immigrating to El Salvador.
According to Cointelegraph, “many Bitcoin investors are considering immigrating to El Salvador,” making headlines.
El Salvador currently uses Bitcoin (BTC) as its official currency, making it more tolerant and less regulated than any other country in the world regarding cryptocurrency use. Consequently, many cryptocurrency investors appear to be preparing to flee to El Salvador to escape the turbulent legal landscape.
This has been a consistent argument since shortly after the legal tender bill was passed in 2021, but it has resurfaced as regulations and sanctions on virtual currencies have intensified in countries around the world, including the United States and Northern Europe.
El Salvador continues to steadily purchase BTC, and the country saw significant national gains in the first half of 2024, when the market was booming, and its citizens’ quality of life is said to have improved significantly.
Furthermore, the Salvadoran authorities have no choice but to welcome the immigration of many foreign nationals, as this will not only elevate the country’s prestige but also provide numerous businessmen with investment immigration rights, thus filling the national treasury.
Therefore, if this problem persists and a steady influx of immigrants occurs, the cryptocurrency market is expected to see a tailwind.
What are the expectations for cryptocurrency regulation in South Korea?
South Korea also has many regulations, including the ‘travel rule’, but the issue that will have the greatest impact is likely to be ‘coin taxation on virtual currency’.
They had previously said that they would begin taxing cryptocurrency profits starting in 2025, but now that the coin boom has subsided, they are showing a passive attitude again.
Taxation of virtual assets, which was initially expected to come under the law in 2023, has been delayed for several years, and there is a high possibility that introducing the system right away after 2024, when the current bear market is continuing, will provoke investor resentment, leading to predictions that it will be delayed until 2028.
Therefore, the view of domestic investment experts is that, apart from the recent El Salvador immigration situation, it is unlikely to have a significant impact on the Korean people.
Bitcoin recognized in El Salvador as in Hong Kong?
At 10:00 AM on the 28th local time, a member of the Hong Kong Legislative Council (Representative Ng) stated that he would positively consider the idea of holding a portion of the national treasury in Bitcoin.
He mentioned in his X account that Bitcoin is a good way to prevent inflation and that holding a limited amount of Bitcoin is a good way to preserve the future asset value of Hong Kong.
While this statement certainly doesn’t guarantee the possibility of direct legal action, it’s clear that several countries are positively reviewing the proposal, following US presidential candidate Donald Trump, and it’s certainly exciting many Bitcoin investors.
